SHOALS TECHNOLOGIES GROUP -A (SHLS) Stock Fundamental Analysis
NASDAQ:SHLS - Nasdaq - US82489W1071 - Common Stock - Currency: USD
SHLS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 95 industry peers in the Electrical Equipment industry. While SHLS has a great health rating, its profitability is only average at the moment. SHLS is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, SHLS could be worth investigating further for value investing!.
1. Profitability
1.1 Basic Checks
SHLS had positive earnings in the past year.
In the past year SHLS had a positive cash flow from operations.
In the past 5 years SHLS has always been profitable.
SHLS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SHLS has a better Return On Assets (2.42%) than 77.89% of its industry peers.
SHLS's Return On Equity of 3.41% is fine compared to the rest of the industry. SHLS outperforms 74.74% of its industry peers.
SHLS has a Return On Invested Capital of 4.38%. This is in the better half of the industry: SHLS outperforms 71.58% of its industry peers.
The Average Return On Invested Capital over the past 3 years for SHLS is below the industry average of 10.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.42% | ||
| ROE | 3.41% | ||
| ROIC | 4.38% |
ROA(3y)9.74%
ROA(5y)9.41%
ROE(3y)18.49%
ROE(5y)N/A
ROIC(3y)7.05%
ROIC(5y)8.61%
1.3 Margins
The Profit Margin of SHLS (4.91%) is better than 80.00% of its industry peers.
SHLS's Profit Margin has declined in the last couple of years.
The Operating Margin of SHLS (11.29%) is better than 82.11% of its industry peers.
In the last couple of years the Operating Margin of SHLS has declined.
SHLS's Gross Margin of 34.39% is fine compared to the rest of the industry. SHLS outperforms 78.95% of its industry peers.
In the last couple of years the Gross Margin of SHLS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.29% | ||
| PM (TTM) | 4.91% | ||
| GM | 34.39% |
OM growth 3Y-8.94%
OM growth 5Y-7.19%
PM growth 3Y77.6%
PM growth 5Y-19.03%
GM growth 3Y-2.8%
GM growth 5Y3.07%
2. Health
2.1 Basic Checks
SHLS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SHLS has less shares outstanding
Compared to 5 years ago, SHLS has about the same amount of shares outstanding.
The debt/assets ratio for SHLS has been reduced compared to a year ago.
2.2 Solvency
SHLS has an Altman-Z score of 3.01. This indicates that SHLS is financially healthy and has little risk of bankruptcy at the moment.
SHLS has a better Altman-Z score (3.01) than 69.47% of its industry peers.
SHLS has a debt to FCF ratio of 1.92. This is a very positive value and a sign of high solvency as it would only need 1.92 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.92, SHLS belongs to the best of the industry, outperforming 87.37% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that SHLS is not too dependend on debt financing.
SHLS's Debt to Equity ratio of 0.25 is in line compared to the rest of the industry. SHLS outperforms 58.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.92 | ||
| Altman-Z | 3.01 |
ROIC/WACC0.5
WACC8.85%
2.3 Liquidity
A Current Ratio of 2.34 indicates that SHLS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.34, SHLS is in the better half of the industry, outperforming 66.32% of the companies in the same industry.
SHLS has a Quick Ratio of 1.58. This is a normal value and indicates that SHLS is financially healthy and should not expect problems in meeting its short term obligations.
SHLS has a Quick ratio of 1.58. This is in the better half of the industry: SHLS outperforms 62.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
The earnings per share for SHLS have decreased strongly by -45.28% in the last year.
SHLS shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -0.95% yearly.
Looking at the last year, SHLS shows a very negative growth in Revenue. The Revenue has decreased by -18.09% in the last year.
SHLS shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.54% yearly.
EPS 1Y (TTM)-45.28%
EPS 3Y14.47%
EPS 5Y-0.95%
EPS Q2Q%-57.14%
Revenue 1Y (TTM)-18.09%
Revenue growth 3Y23.25%
Revenue growth 5Y22.54%
Sales Q2Q%-11.21%
3.2 Future
Based on estimates for the next years, SHLS will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.47% on average per year.
SHLS is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.35% yearly.
EPS Next Y12.77%
EPS Next 2Y20.21%
EPS Next 3Y18.44%
EPS Next 5Y11.47%
Revenue Next Year10.44%
Revenue Next 2Y11.11%
Revenue Next 3Y10.93%
Revenue Next 5Y8.35%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
SHLS is valuated correctly with a Price/Earnings ratio of 15.74.
Compared to the rest of the industry, the Price/Earnings ratio of SHLS indicates a rather cheap valuation: SHLS is cheaper than 84.21% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of SHLS to the average of the S&P500 Index (25.91), we can say SHLS is valued slightly cheaper.
With a Price/Forward Earnings ratio of 9.57, the valuation of SHLS can be described as very reasonable.
92.63% of the companies in the same industry are more expensive than SHLS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SHLS to the average of the S&P500 Index (21.85), we can say SHLS is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.74 | ||
| Fwd PE | 9.57 |
4.2 Price Multiples
78.95% of the companies in the same industry are more expensive than SHLS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SHLS is valued cheaper than 92.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.32 | ||
| EV/EBITDA | 15.32 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of SHLS may justify a higher PE ratio.
A more expensive valuation may be justified as SHLS's earnings are expected to grow with 18.44% in the coming years.
PEG (NY)1.23
PEG (5Y)N/A
EPS Next 2Y20.21%
EPS Next 3Y18.44%
5. Dividend
5.1 Amount
No dividends for SHLS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:SHLS (5/23/2025, 11:37:06 AM)
4.565
0 (-0.11%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners110.54%
Inst Owner Change2.12%
Ins Owners0.79%
Ins Owner Change13.5%
Market Cap763.09M
Analysts78.57
Price Target6.24 (36.69%)
Short Float %8.65%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-21.11%
Min EPS beat(2)-23.86%
Max EPS beat(2)-18.35%
EPS beat(4)1
Avg EPS beat(4)-9.26%
Min EPS beat(4)-23.86%
Max EPS beat(4)25.69%
EPS beat(8)4
Avg EPS beat(8)-3.89%
EPS beat(12)8
Avg EPS beat(12)8.82%
EPS beat(16)11
Avg EPS beat(16)3.62%
Revenue beat(2)2
Avg Revenue beat(2)4.38%
Min Revenue beat(2)2.62%
Max Revenue beat(2)6.14%
Revenue beat(4)4
Avg Revenue beat(4)4.45%
Min Revenue beat(4)1.47%
Max Revenue beat(4)7.56%
Revenue beat(8)5
Avg Revenue beat(8)0.87%
Revenue beat(12)8
Avg Revenue beat(12)2.33%
Revenue beat(16)9
Avg Revenue beat(16)1.09%
PT rev (1m)-4.67%
PT rev (3m)-13.8%
EPS NQ rev (1m)11.65%
EPS NQ rev (3m)-20.4%
EPS NY rev (1m)-3.27%
EPS NY rev (3m)-13.05%
Revenue NQ rev (1m)9.23%
Revenue NQ rev (3m)-3.24%
Revenue NY rev (1m)1.84%
Revenue NY rev (3m)-1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.74 | ||
| Fwd PE | 9.57 | ||
| P/S | 1.96 | ||
| P/FCF | 10.32 | ||
| P/OCF | 9.18 | ||
| P/B | 1.37 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 15.32 |
EPS(TTM)0.29
EY6.35%
EPS(NY)0.48
Fwd EY10.45%
FCF(TTM)0.44
FCFY9.69%
OCF(TTM)0.5
OCFY10.89%
SpS2.33
BVpS3.34
TBVpS2.69
PEG (NY)1.23
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.42% | ||
| ROE | 3.41% | ||
| ROCE | 6.2% | ||
| ROIC | 4.38% | ||
| ROICexc | 4.61% | ||
| ROICexgc | 5.51% | ||
| OM | 11.29% | ||
| PM (TTM) | 4.91% | ||
| GM | 34.39% | ||
| FCFM | 19.03% |
ROA(3y)9.74%
ROA(5y)9.41%
ROE(3y)18.49%
ROE(5y)N/A
ROIC(3y)7.05%
ROIC(5y)8.61%
ROICexc(3y)7.24%
ROICexc(5y)8.93%
ROICexgc(3y)8.98%
ROICexgc(5y)20.95%
ROCE(3y)9.98%
ROCE(5y)12.18%
ROICexcg growth 3Y-14.52%
ROICexcg growth 5Y-38.93%
ROICexc growth 3Y-7.16%
ROICexc growth 5Y-15.5%
OM growth 3Y-8.94%
OM growth 5Y-7.19%
PM growth 3Y77.6%
PM growth 5Y-19.03%
GM growth 3Y-2.8%
GM growth 5Y3.07%
F-Score5
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 1.92 | ||
| Debt/EBITDA | 2.5 | ||
| Cap/Depr | 70.63% | ||
| Cap/Sales | 2.35% | ||
| Interest Coverage | 3.9 | ||
| Cash Conversion | 146.25% | ||
| Profit Quality | 387.85% | ||
| Current Ratio | 2.34 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 3.01 |
F-Score5
WACC8.85%
ROIC/WACC0.5
Cap/Depr(3y)65.64%
Cap/Depr(5y)54.49%
Cap/Sales(3y)1.74%
Cap/Sales(5y)1.8%
Profit Quality(3y)176.81%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-45.28%
EPS 3Y14.47%
EPS 5Y-0.95%
EPS Q2Q%-57.14%
EPS Next Y12.77%
EPS Next 2Y20.21%
EPS Next 3Y18.44%
EPS Next 5Y11.47%
Revenue 1Y (TTM)-18.09%
Revenue growth 3Y23.25%
Revenue growth 5Y22.54%
Sales Q2Q%-11.21%
Revenue Next Year10.44%
Revenue Next 2Y11.11%
Revenue Next 3Y10.93%
Revenue Next 5Y8.35%
EBIT growth 1Y-31.89%
EBIT growth 3Y12.23%
EBIT growth 5Y13.73%
EBIT Next Year75.33%
EBIT Next 3Y33.16%
EBIT Next 5Y21.27%
FCF growth 1Y4.24%
FCF growth 3YN/A
FCF growth 5Y15.88%
OCF growth 1Y10.44%
OCF growth 3YN/A
OCF growth 5Y17.31%